As per the pact, the media unit of Reliance and its affiliates are expected to own at least 61 per cent in the merged entity, with Disney holding the rest.
Reliance Industries Limited (RIL) and Walt Disney Co have signed a binding pact to merge their media operations in India, Bloomberg reported on Sunday, citing people familiar with the matter. As per the pact, the media unit of Reliance and its affiliates are expected to own at least 61 per cent in the merged entity, with Disney holding the rest.
The stake split between the partners may change, depending on how Disney’s other local assets are factored in by the time the deal is closed. The deal is likely to be announced early this week.
The Wall Street Journal earlier this month reported that Disney had agreed to sell 60 per per cent of its Indian business to Viacom18. The deal is seen as a significant move in the Indian media and entertainment industry after the Zee-Sony deal collapsed last month.
Disney agreed to sell 60 per cent of its India business to Viacom 18 at a valuation of $3.9 billion (Rs 33,000 crore). Viacom18 is owned by Reliance Industries Limited (RIL) Chairman Mukesh Ambani.